How do I change the depreciation rate or term for an asset?
There are circumstances when an asset needs to have it's Depreciation Term or Rate changed. This can be due to a change in a change in a tax code, advice from an auditor, or simply because there was a mistake when it was first entered.
Depending on what you are needing, there are two functions to help:
- Amend the asset: How to Amend an asset
- Revalue the asset: How to revalue an asset
Key differences between Amend and Revalue
- A Revalue keeps the depreciation schedules and asset values that are prior to the Revalue Date.
- A Revalue changes the accounting and/or tax treatment DURING the assets depreciation lifecycle.
- An Amend resets the depreciation schedules as if the prior depreciation had never occurred.
- A Revalue doesn't reactivate an asset like Amend does, instead it continues the assets life and depreciation based on the Revalue Amount, Schedule and Date.